AS California Gov. Gavin Newsom tries to fend off a recall election, his predecessor fears his heedless spending is going to impose a “fiscal stress” on taxpayers.
"The state is now spending money, it's not sustainable,” former Gov. Jerry Brown said pointing to the current governor’s $100billion budget signed into law on Tuesday.
“We need a more frugal, sustainable, more prudent way of doing business. I would predict that certainly within two years, we're going to see fiscal stress."
The four-term Golden State bluntly explained that "money doesn't grow on trees” and that much of the promising $76 billion budget surplus aiding Newsom's "California Comeback Plan" is a mirage.
"The state has a big share of money that it never had before, but it's artificially pumped up by one, the federal government's stimulus, number two, the growing utter inequality of the economy because the rich people make so damn much money and California happens to tax the rich people disproportionately," Brown told NBC Los Angeles.
Brown asserted there needs to be more discipline when it comes to paying the way out of the pandemic.
"So the word is volatility, money comes, money goes, and in America, [it's] very volatile.
“The federal government is getting deeper into debt, they're spending money wildly.”
Brown, who served as the 34th and 39th governor, has been pushing to rein in spending because of the state’s reliance on the rich residents.
“The growing utter inequality of the economy because the rich people make so damn much money and California happens to tax the rich people disproportionately… we need a more frugal, sustainable, more prudent way of doing business.”
Newsom has drawn fire from naysayers for his budget doling out $600 stimulus checks to Californians earning between $30,000 to $75,000 as a way to offset the pocketbook pinch brought on by Covid-19 pandemic.
“Californians who have been impacted by this pandemic will get help to provide for their families and keep a roof over their heads,” he said in a statement back in January.
The monies are expected to be distributed to as many as 4 million eligible people in September.
That same month, Newsom must retain his perch as the top decider in the Golden State as he faces off against at least 26 Republicans and 16 Democrats – including Republicans Caitlyn Jenner, former San Diego mayor Kevin Faulconer, businessman John Cox and Assemblymember Kevin Kiley – in the recall election.
Former Gov. Brown is convinced that despite Newsom’s money woes, he will likely survive the attempt to unseat him at the polls.
"The political outcome is not in doubt," he said, according to the San Francisco Chronicle.
"Gavin Newsom will not be recalled."
Source: Read Full Article